By Maryam Charles
The Financial Reporting Council of Nigeria (FRC) says it will formally integrate Islamic Finance Services into the national financial reporting framework through the adoption of standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
FRC Executive Secretary and Chief Executive Officer, Dr. Rabiu Olowo, announced the plan in Lagos during his address at the 7th Africa Islamic Finance Conference.
Olowo explained that the move aligns with the council’s statutory mandate to set, monitor, and enforce financial reporting standards in the country, adding that the growing influence of Islamic finance in Nigeria necessitates a globally consistent regulatory approach.
“Nigeria’s financial system is evolving, and our regulatory framework must evolve with it,” Olowo said.
He noted that the Islamic finance sector — comprising non-interest banking, Sukuk bonds, Takaful insurance, and ethical capital market instruments — has witnessed rapid growth in recent years, creating the need for internationally benchmarked reporting standards.
According to him, the integration of AAOIFI standards will strengthen investor confidence, promote transparency, and ensure compatibility with global Islamic finance practices.
The FRC boss also highlighted the council’s ongoing collaboration with stakeholders, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the National Insurance Commission (NAICOM), to ensure smooth adoption and implementation.
He added that the initiative will not only boost Nigeria’s financial inclusion goals but also enhance its attractiveness as a hub for Islamic finance in Africa.
